Procurement Pitfalls: Are You Protected?

Why Your Interior Design Contract (and Procurement Terms) Deserve a Legal Tune-Up

Image by Romain Dancre, Unsplash

By Sharon Givoni, Intellectual Property & Commercial Lawyer

Sometimes, as an interior designer, you start out with a contract that’s been cobbled together over the years (a little bit borrowed here, a little bit tweaked there – sound familiar?). It might have been handed down from a mentor, lifted from a template, or “inspired” by what a friend uses.

The trouble is, those pieced-together contracts don’t always hold up. The laws keep changing, client expectations shift, and the fine print you haven’t looked at in years can quickly turn into a legal blind spot. What might once have felt “good enough” is actually the foundation of your whole business and it deserves a serious tune-up.

Our Interior Designer Contract Set has been drafted by experienced Australian lawyers in collaboration with The Design Coach to make sure it’s industry-ready, plain-language, and fully up to date. It doesn’t just “look legal”; it’s designed to actually protect you, covering quoting, sourcing, intellectual property, client responsibilities, variations, and more.

Image supplied by Pexels

Why Procurement Is a Legal Minefield for Designers

Procurement is one of the most legally complex areas of interior design practice, and one that’s too often misunderstood or glossed over in contracts.

There’s no one-size-fits-all way to handle it. You might be:

• Purchasing directly from suppliers and on-selling to your client,

• Facilitating orders in the client’s name (but still coordinating delivery and logistics), or

• Simply advising on selections while the client transacts directly with the suppliers.

Each of these approaches carries different legal consequences for things like liability, warranty, insurance, and payment. And as the laws continue to evolve, particularly around consumer protection and online trading, so do your professional obligations.

The Hidden Liabilities in “Helping” Your Clients Purchase

Many designers don’t realise that as soon as you buy and resell products, you’re no longer just providing a service, you’re also acting as a retailer or supplier under Australian Consumer Law (ACL). That means:

• You may be liable for defects, damage, or faults in goods, even if you didn’t manufacture them.

• You must comply with statutory guarantees, including that goods are of acceptable quality and fit for purpose.

• You are responsible for refunds and replacements under consumer law, not just the manufacturer.

Even if you’re not reselling but facilitating, your involvement in the transaction can still expose you to risk. For example, if a supplier fails to deliver, or if a product doesn’t meet safety or warranty standards. Without clear written terms, the client may expect you to “sort it out” simply because you arranged it.

Image Pexels

New Legal Expectations for Designers

In recent years, regulators have placed increasing emphasis on transparency and consumer protection in service industries, including design and architecture. Key developments relevant to designers include:

1. Stronger consumer rights under the ACL (2022 amendments) – These broadened the definition of “consumer goods” and “services,” which now clearly covers design and procurement services. Designers must now ensure that clients understand who is legally responsible for purchased goods and what warranties apply.
   

2. Electronic Transactions and Digital Contracts – With many designers using online proposal tools or digital signatures, your contract must clearly capture client approvals, payment terms, and acceptance of liability electronically. “Handshake” approvals or email confirmations are no longer sufficient proof.
   

3. Fair Trading and Disclosure Requirements – Some states (including NSW and VIC) have updated their Fair Trading guidelines to emphasise disclosure of commissions, mark-ups, and third-party incentives. If you receive trade discounts or referral fees, your client should be informed, and your contract should specify how these are treated.
   

4. Insurance and Professional Indemnity Gaps – Insurers are increasingly scrutinising whether designers’ contracts properly outline procurement responsibilities. If your terms are vague or outdated, your claim may be denied in the event of a dispute or product failure.

The TDC Client Agreement Bundle includes our Comprehensive + Abridged Contracts for Interior Designers

How a Solid Contract Protects You

A well-drafted, up-to-date contract doesn’t just prevent disputes, it positions you as a professional operating with clarity and integrity. For procurement, your contract should clearly define:

• The capacity in which you’re acting (supplier, facilitator, or advisor).

• Ownership and risk transfer — who owns goods at each stage and who bears the risk of damage or loss.

• Warranty handling — who is responsible for following up with suppliers or manufacturers.

• Commissions or mark-ups — how they’re applied and disclosed.

• Client responsibilities — including approvals, payments, access, and insurance.

When those elements are properly addressed, you protect not only your business but also your client relationships, ensuring that expectations are clear, fair, and legally sound.

Getting Your Legal House in Order

At The Design Coach, we’ve seen too many designers fall into disputes that could have been avoided with a clear, current contract. Whether you’re running a solo studio or managing a growing team, your documentation is the backbone of your business.

Our Interior Designer Contract is written by lawyers who understand how the design industry works: not just in theory, but in the day-to-day realities of procurement, sourcing, and client service.

It’s built to evolve with you, ensuring your business remains legally compliant and protected as industry standards and laws continue to change.

Final Word

Designing beautiful spaces is your passion. Protecting your business is ours. If it’s been a few years since you reviewed your contract, now’s the time to ensure your documentation is doing its job. With proper procurement clauses and clear client terms, you’ll be safeguarding your reputation and giving your clients the confidence that they’re working with a professional who runs a business as carefully as they design a home.

Written by Sharon Givoni, Sharon Givoni Lawyers.

Disclaimer:

The contents of this blog are for general information only and are not legal advice. They may not apply to your specific situation, and the law can change. You should get independent legal advice before acting on anything in this blog.